The following condensed statement of income of Helen Corporation, a diversified company, is presented for the two years ended December 31, 2008 and 2007:

On January 1, 2008, Helen entered into an agreement to sell for \($3,200,000\) the assets and product line of one of its separate operating divisions. The sale was consummated on December 31, 2008 and resulted in a gain on disposition of \($900,000\). This division’s contribution to Helen's reported income before taxes for each year was as follows:

Assume an income tax rate of 50%.
Required:
1. In preparing a revised comparative statement of income, Helen should report income from continuing operations after income taxes for 2008 and 2007, respectively, amounting to how much?
2. Starting with the revised income from continuing operations numbers you obtained in requirement 1, prepare the revised comparative income statements for 2008 and 2007 showing appropriate details for gain (loss) from discontinued operations.

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Net sales Cost of sales Gross profit Operating expenses Operating income Gain on sale of division Net income before taxes Provision for income taxes Net income 2008 2007 $10,000,000 $9,600,000 (6,200,000) (6,000,000) 3,800,000 3,600,000 (2,200,000) (2,400,000) 1,600,000 1,200,000 900,000 2,500,000 (1,250,000) $ 1,250,000 1,200,000 (600,000) $ 600,000